Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80CCC of the Income-Tax Act. There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings. The savings rate has come down from over 38 per cent of GDP in 2008 to 30 per cent in 2012-13.

The hike in the exemption limit would provide much needed relief to the salary earners who are reeling under the impact of high inflation.

The government also hiked the housing interest rate deduction limit to Rs 2 lakh from Rs 1.5 lakh on personal home loans. In a marginal relief to the individual taxpayers, Jaitley increased the income tax exemption limit from Rs 2 lakh to Rs 2.5 lakh for citizens up to 60 years.

For senior citizens the limit was hiked to Rs 3 lakh. The tax rates were kept unchanged by Jaitley.

The government will enhance the Public Provident Fund (PPF) savings limit from Rs 1.1 lakh to Rs 1.5 lakh, said Jaitley. Looking to improve the EPFO facilities for the citizens of India, Jaitley said, "EPFO will be improved via computerization." "We will set up a panel to examine unclaimed PFs, POs amounts," he said.

Looking to pull the economy from its dire straits, Jaitley said, "We are aiming for a 7-8% GDP growth in 3-4 years."

"The steps I will announce are only a beginning towards 7-8% growth to be achieved in the next few years," Jaitley said. "We look forward to lower levels of inflation. The country is in no mood to suffer from unemployment. Continuing slowdown has posed threat to global economy. There are green shoots of global growth that are emerging," Jaitley said. Jaitley began his speech by saying, "The people of India have voted for a change. India unhesitatingly desires to grow."

According to Jaitley, the Budget 2014 is only a step in the direction of economic recovery. Jaitley said, "We shall leave no stone unturned in creating a vibrant India."